Just Group has called on retirees to shop around for the best deals after analysis found that the least competitive deals are paying older buyers less than those five years ago.

The firm's latest market rates research highlighted that while annuities typically pay older retirees more than younger retirees as a result of having fewer years of life remaining, in some cases people are being offered lower rates than those available to people five years younger.

Just Group’s analysis revealed that a 70-year-old with a £50,000 pension fund would receive £3,560 a year from the least competitive deal.

This equates to £71 a year less than the current best deal on offer to a 65-year-old.

The worst deal for a 75-year-old is £4,024, which is £39 a year less than the best deal for a 70-year-old.

Group communications director at Just Group, Stephen Lowe, said: "Our research reinforces the importance of retirees shopping around for the best rate when buying a guaranteed income for life.

"You may have saved with your current pension provider for years but that is no guarantee that they will offer you a competitive rate. In some cases, retirees are being offered rates that deliver less income than people five years younger can secure.

"Annuities give people peace of mind to spend what they receive without worrying it will run out during their lifetime. But you have to get the choice right first time – finding the deal that will deliver the best income. That means shopping around and disclosing health and lifestyle information that could push up the rate."

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